Practice Test Geeks(CPACE) Commercial Property Assessed Clean Energy Practice Test
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Program Structure Flashcards

7 cards from real CPACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Under most C-PACE enabling statutes, which property types are eligible for financing?

    Answer: Commercial, industrial, agricultural, and multifamily properties (5+ units)

    C-PACE statutes generally cover income-producing properties including commercial, industrial, agricultural, and larger multifamily buildings.

  2. What is a 'project completion reserve' in the context of C-PACE program structure?

    Answer: Escrow funds retained until construction is verified complete and equipment is operational

    A project completion reserve is escrowed capital held back from disbursement until the installed improvements are verified as complete and functional.

  3. How do C-PACE repayments typically appear on a property owner's financial obligations?

    Answer: As a line item on the property tax bill, collected by the local tax authority

    C-PACE assessments are collected alongside property taxes by the local tax authority, leveraging existing tax collection infrastructure.

  4. Which metric is most commonly used in C-PACE underwriting to confirm that a project makes financial sense for the property owner?

    Answer: Savings-to-investment ratio (SIR) confirming projected savings exceed financing costs

    The savings-to-investment ratio (SIR ≥ 1.0) is a standard C-PACE underwriting metric confirming that energy savings will exceed the total financing cost.

  5. In a C-PACE structure, who is responsible for verifying that installed measures actually perform as projected?

    Answer: A qualified third-party measurement and verification (M&V) professional

    Third-party M&V professionals validate that installed C-PACE improvements achieve the projected energy and cost savings after installation.

  6. What happens to the C-PACE assessment if a property goes into foreclosure?

    Answer: The C-PACE assessment survives foreclosure and must be paid by the new property owner

    Because C-PACE liens have super-priority status similar to property taxes, they typically survive foreclosure and pass to the new owner.

  7. Which of the following represents a key structural difference between C-PACE and a conventional commercial mortgage?

    Answer: C-PACE is tied to the property rather than the borrower's personal creditworthiness

    Unlike conventional mortgages, C-PACE underwriting is based on property value and project cash flows rather than the owner's personal credit profile.